Large weekly bullish divergence

25 oct. 2022

The S&P500 has build some large weekly bullish divergence over the last several months with RSI creating higher lows and the S&P500 creating a lower low. This is also occurring right off the 200wma which can typically be a line in the sand for bull/bear markets. Based on previous recoveries from the bottom the market could rally until 4500-4600 before significant resistance. This lines up nicely with some major previous resistance points and the 78.6 retracement of the entire move down and a 1.272 fib extension.